(SPRINGFIELD, Ore.) March 19, 2021— PacificSource Health Plans announced consolidated financial results for the twelve months ended December 31, 2020. PacificSource reported a $48M profit in 2020. This number is the combination of a loss on 2020 underwriting results of $8M and the recoupment of a $56M “Risk Corridor” payment from the Federal Government for losses in the years 2014, 2015, and 2016.
The recording of the $56M reflects the successful result of a lawsuit relating to the Federal Government’s failure to pay its obligations under the Affordable Care Act in prior years. In accordance with Statutory Accounting Principles, this $56M is recorded in premium revenue in the 2020 financials, the year it was finally received.
“While PacificSource Health Plans had not budgeted a loss in 2020, it was important for our company to be supportive of providers, members and communities during the Pandemic,” said Peter Davidson, executive vice president and CFO of PacificSource. “The result is that we had an underwriting loss on our 2020 membership activity that was offset from some delayed Federal revenue from a number of years ago and also from investment earnings. We continue our focus on members and providers as communities address the ongoing impact of COVID-19.”
About PacificSource Health Plans:
PacificSource Health Plans is an independent, not-for-profit community health plan serving the Northwest. Founded in 1933, PacificSource has local offices throughout Oregon, Idaho, Montana and Washington. The PacificSource family of companies employs more than 1,500 people and serves over 523,700 individuals throughout the Greater Northwest. For more information, visit PacificSource.com.